A firm trend was seen on the cotton market on Friday in the process of lean business, dealers said. The official spot rate was unchanged at Rs 6700, they said. In ready session, approximately 300 bales of cotton from Sadiqabad sold at Rs 6650, they said. Cotton analyst, Naseem Usman said that rates moved cautiously as some needy spinners moved in to book quality cotton.

He also said that despite, reports of good production the world over, prices moving within present levels, on the other hand, the ginners, who have little stock of better lint, try to sell as much as they can to keep themselves away from future losses.

Besides, the report showing that Plant Protection Department may suspend cotton import from India, this could be a factor behind the renewed buying and stable prices, they noted. Reuters adds: ICE cotton futures soared over 3 percent on Thursday propped up by fund buying after hitting a one-month low in the previous session.

The July cotton contract on ICE Futures US settled up 3.52 percent at 79.18 cents per lb., the biggest intra-day percentage gain for the contract in 10 months. Weekly export sales data from the US Department of Agriculture (USDA) showed net upland sales last week totalled 160,600 running bales, up 5 percent from the week before.

The July cotton contract on ICE Futures US settled up 2.69 cents, or 3.52 percent, the biggest intra-day percentage gain since July 12, 2016, at 79.18 cents per lb. It traded within a range of 76.17 and 79.21 cents a lb. Total futures market volume rose by 30,961 lots to 65,720 lots. Data showed total open interest fell 3,784 to 254,040 contracts in the previous session. Only one deal of 300 bales of cotton from Sadiqabad finalised at Rs 6650, they said.

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The KCA Official Spot Rate for Local Dealings in Pakistan Rupees

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FOR BASE GRADE 3 STAPLE LENGTH 1-1/16"

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                                    MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL

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Rate              Ex-Gin   Upcountry   Spot Rate    Spot Rate    Difference

                    For      Price     Ex-Karachi  Ex. KHI. As   Ex-Karachi

                                                  on 11.05.2017

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37.324 kg         6,700        135       6,835         6,835            Nil

Equivalent

40 kgs            7,180        145       7,325         7,325            Nil

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